Page 2 - AAG029_H4P Increase Sales Flyer

Example A married couple wants to purchase a home valued at $300,000. The
youngest spouse’s age is 65 and the current initial fixed interest rate is 4.56%.

Example Step One Step Two Step Three
Purchase HECM Loan Funds Due Monthly
Price of Proceeds from Borrower Mortgage
Home (calculation based at Closing Payment 1
on age of youngest
borrower, interest rates,
and home value)

$300,000 $137,700 $175,571 $0

This example is based on the youngest borrower age 65, Annual Percentage Rate of 5.717%, home purchase price of
$300,000, IMIP of $6,000, origination fee of $5,000, and estimated closing costs of $2,271. HECM Fixed as of 07/01/2019.

For industry professionals only - not intended for distribution to the general public.

1 Borrower must continue to pay property taxes, homeowners insurance, and home maintenance costs.
2 ”Baby Boomers Retire”-Pew Research Center. 2010. Web.5 Dec.2015. http://www.pewresearch.org/daily-number/baby-boomers-retire/
NMLS# 9392 (www.nmlsconsumeraccess.org). American Advisors Group (AAG) is headquartered at 3800 W. Chapman Ave., 3rd & 7th Floors, Orange CA, 92868. AAG
conducts business in the following states: AK (Alaska Mortgage Broker/Lender License No. AK9392), AL, AR, AZ (BK_0911141), CA (CA Loans made or arranged pursuant to a
California Finance Lenders Law license (603F324) and Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act (4131144)),
CO (Regulated by the Division of Real Estate; to check the license status of your mortgage loan originator, visit http://www.dora.state.co.us/real-estate/index.htm), CT, DC
(District of Columbia Mortgage Dual Authority License No. MLB9392), DE, FL, GA (residential Mortgage Licensee #22849), HI, IA, ID, IL (Illinois Residential Mortgage Licensee;
Illinois Commissioner of Banks can be reached at 100 West Randolph, 9th Floor, Chicago, Illinois 60601, (312)814-4500), IN, KS (Kansas Licensed Mortgage Company
MC. 0025024), KY, LA, MD, ME (SLM11356), MI, MN, MO (4824 NW Gateway Ave, Suite 201, Riverside, MO 64168), MS (Licensed by the Mississippi Department of Banking
and Consumer Finance), MT, NC, ND, NE, NH (Licensed by the New Hampshire banking department), NJ (Licensed by the N.J. Department of Banking and Insurance),
NM, NV, NY (Licensed Mortgage Banker-NYS Department of Financial Services; American Advisors Group operates as American Advisors Group, Inc. in New York.), OH
(MBMB.850159.000), OK, OR (ML-4623), PA (Licensed by the Pennsylvania Department of Banking 28356), RI (Rhode Island Licensed Lender), SD, SC, TN, TX (Mortgage
Banker Registration, 13785 Research Blvd, Ste. 125, Austin, TX 78750), UT, VA (Licensed by the Virginia State Corporation Commission MC – 5134), VT (Vermont Lender
License No. 6384), WA (Consumer Loan # CL-9392),WV, WI, WY (WY-DBA AAG Reverse Mortgage Lender/Broker License No. 2331). AAG is an equal housing lender. These
materials are not from HUD or FHA and were not approved by HUD or a government agency.

A reverse mortgage increases the principal mortgage loan amount and decreases home equity (it is a negative amortization loan). AAG works with other lenders and
financial institutions that offer reverse mortgages.

Reverse mortgage loan terms include occupying the home as your primary residence, maintaining the home, paying property taxes and homeowners insurance.
Although these costs may be substantial, AAG does not establish an escrow account for these payments. However, a set-aside account can be set up for taxes and
insurance, and in some cases may be required. Not all interest on a reverse mortgage is tax-deductible and to the extent that it is, such deduction is not available until
the loan is partially or fully repaid.

AAG charges an origination fee, mortgage insurance premium (where required by HUD), closing costs and servicing fees, rolled into the balance of the loan. AAG
charges interest on the balance, which grows over time. When the last borrower or eligible non-borrowing spouse dies, sells the home, permanently moves out, or
fails to comply with the loan terms, the loan becomes due and payable (and the property may become subject to foreclosure). When this happens, some or all of the
equity in the property no longer belongs to the borrowers, who may need to sell the home or otherwise repay the loan balance. V2019.02.20_OR